Stable Passive Income Sources: These REITs Are Worth a Look

Building a stable passive income can significantly contribute to financial independence, as it reliably flows year after year. An attractive option for this is dividend stocks, particularly diversified Real Estate Investment Trusts (REITs). Interesting candidates in this area include W. P. Carey, Rexford Industrial Realty, and Invitation Homes, which promise potentially continuous passive income over decades. W. P. Carey focuses on owning mission-critical warehouse, industrial, and retail properties in the U.S. and Europe. A significant portion of their leases includes escalation clauses tied to inflation. The company distributes 70% to 75% of its stable earnings as dividends annually, while reinvesting the remainder to promote further growth. With a dividend yield of almost 6%, W. P. Carey could remain an attractive source of income in the future. It is also worthwhile to consider Rexford Industrial Realty, which focuses exclusively on the Californian industrial real estate market. Thanks to high demand and limited supply, the company has achieved above-average rental growth in recent years. The dividend has been increased annually since its IPO a decade ago, with a current yield of over 3.5%. With various growth drivers, Rexford could continue its success story. Finally, Invitation Homes invests in rental single-family homes in the largest U.S. metropolitan areas. The company records consistent growth rates and has been able to increase its dividend annually since its 2017 IPO. With a development program of nearly 2,700 new homes and an innovative third-party management model, Invitation Homes is well positioned to generate attractive returns in the coming years. These three REITs are characterized by solid business models and robust dividend policies that provide a reliable source of income. Given the increasing demand for residential and industrial properties, they could serve investors looking for long-term passive income well.